Core Insights - Hurricane Melissa, a Category 5 storm, made landfall in Jamaica, likely triggering a full payout from a $150 million catastrophe bond designed for the island [1][2][3] Group 1: Catastrophe Bond Details - The catastrophe bond, structured by Aon, provides parametric coverage for Jamaica against losses from named storms, effective through 2027 [2] - Jamaica is the first Caribbean government and the first small island state to independently sponsor a catastrophe bond, showcasing the value of private market funding [3] - The bond's payout is contingent on the storm's central pressure being at or below 900 millibars upon landfall [3][4] Group 2: Payout Process and Timeline - Early data indicates Hurricane Melissa's pressure remained below 900 millibars in several areas, with verification ongoing [4] - The review process for payouts typically takes 2 to 3 weeks, with potential payouts to Jamaica occurring in approximately 1 month [5] - Aon utilized innovative data sources to facilitate faster payments for this event compared to previous transactions [5] Group 3: Market Context and Growth - The catastrophe bond market has grown over 50% since the end of 2022, reaching nearly $55 billion, indicating increasing popularity of such financial instruments [8] - Public-private partnerships, like Jamaica's, demonstrate how parametric insurance can provide rapid and transparent relief after severe storms [8]

Core Insights - Sutton Specialty Insurance Company and Sutton National Insurance Company, along with Bamboo Ide8 Insurance Services, announced the renewal of Bamboo's reinsurance program, which includes the successful closing of the Greengrove Re Ltd. Series 2025-1 catastrophe bond and the Greenshoots Re Ltd. Series 2025-1 sidecar transaction [1][5] Group 1: Greengrove Re Ltd. Catastrophe Bond - Greengrove Re Ltd. issued a $100 million catastrophe bond with a spread of 7.75%, an initial base expected loss of 1.44%, and an indemnity trigger over a three-year term, maturing on April 7, 2028 [2] - The offering reflects a 33% increase from the initial $75 million placement target, with the final spread priced at the lower end of the initial price guidance of 7.50% to 8.50% [2] Group 2: Greenshoots Re Ltd. Sidecar Transaction - Greenshoots Re Ltd. issued $70 million of preference shares for a sidecar transaction supported by several institutional investors [4] - Sutton National entered into a quota share reinsurance contract with Greenshoots Re Ltd., allowing participation in the underwriting results of Bamboo's business written on behalf of Sutton National [4] Group 3: Strategic Importance and Market Response - The transactions are seen as a milestone in Bamboo's history and partnership with Sutton National, aimed at addressing the coverage needs of California homeowners [5] - Investor support for these transactions is viewed as a validation of Bamboo's business model and approach to catastrophe risk management [5][6]